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Anglogold Limited - Report To Shareholders For The Quarter And Nine Months Ended
Release Date: 31/10/2003 08:00:04 Code(s): ANG
AngloGold Limited - Report to shareholders for the quarter and nine months ended
30 September 2003
AngloGold Limited
Registration No. 1944/017354/06
Incorporated in the Republic of South Africa
ISIN: ZAE000043485
Share codes:
JSE: ANG
LSE: 79 LK
NYSE: AU
ASX: AGG
Euronext Paris: VA FP
Euronext Brussels: ANG BB
Report to shareholders for the quarter and nine months ended
30 September 2003
Group results for the quarter ...
- Adjusted headline earnings1 increase by 2% to $67m
- Adjusted operating profit2 down by 3% to $136m
- Total cash costs increase by 6% to $237/oz impacted by strong local
currencies and wage increases in South Africa
- Gold production (on a comparable basis3) increases marginally to 1.39Moz
- Good performances at Great Noligwa, Kopanang and Geita - Problems persist at
Cerro Vanguardia and CC&V, which are being addressed
- Received gold price4 up by 3% to $364/oz
- Ashanti board unanimously recommends revised AngloGold offer and Government
of Ghana indicates support for the AngloGold/Ashanti merger
Quarter ended 9 months ended
Sept June Sept Sept
2003 2003 2003 2002
Rand/Metric
Gold
Produced kg / oz (000) 43,240 44,613 131,457 136,543
Price received4 R/kg / $/oz 86,619 87,983 88,852 103,567
Total cash costs R/kg / $/oz 56,311 55,502 55,966 54,242
Total
production
costs R/kg / $/oz 65,502 65,654 65,891 68,270
Operating profitR / $ million 1,304 1,094 3,607 5,026
Adjusted
operating
profit2 R / $ million 1,004 1,082 3,303 5,205
Net profit R / $ million 729 444 1,721 2,489
Headline
earnings R / $ million 674 513 1,794 2,899
Adjusted
headline
earnings1 R / $ million 497 516 1,628 2,996
Capital
expenditure R / $ million 661 538 1,687 1,962
Earnings per
ordinary share
Basic cents/share 327 199 773 1,123
Diluted cents/share 326 199 769 1,116
Headline cents/share 303 230 805 1,307
Adjusted
headline
earnings1 cents/share 223 232 731 1,351
Dividends cents/share 375 675
Quarter ended 9 months ended
Sept June Sept Sept
2003 2003 2003 2002
Dollar/Imperial
Gold
Produced kg / oz (000) 1,390 1,434 4,226 4,390
Price received4 R/kg / $/oz 364 354 354 299
Total cash costs R/kg / $/oz 237 223 223 157
Total production costs R/kg / $/oz 275 264 263 197
Operating profit R / $ million 176 142 463 466
Adjusted operating
profit2 R / $ million 136 140 422 483
Net profit R / $ million 97 57 219 231
Headline earnings R / $ million 90 66 228 268
Adjusted headline
earnings1 R / $ million 67 66 207 277
Capital expenditure R / $ million 88 69 216 182
Earnings per ordinary
share
Basic cents/share 44 26 98 104
Diluted cents/share 43 26 98 104
Headline cents/share 40 30 102 121
Adjusted headline
earnings1 cents/share 30 30 93 125
Dividends cents/share 51 64
Note
1. Headline earnings before unrealised non-hedge derivatives and
marked-to-market of debt financial instruments
2. Operating profit excluding unrealised non-hedge derivatives
3. Prior quarter production includes 56,000oz from Jerritt Canyon, which was
sold with effect from 30 June 2003. Reported production is not comparable
4. Price received includes realised non-hedge derivatives
$ represents US dollar, unless otherwise stated
Letter from Chairman and CEO
Dear Shareholder
The decision this week by the Government of Ghana to
support AngloGold"s proposed merger with Ashanti Goldfields is a significant
step towards completion of this transaction.
AngloGold has now secured the support of the Ashanti board
and its two largest shareholders, the Government of Ghana
and Lonmin. Although a further period of three to six months
will be required for the completion of the merger, AngloGold"s
management has already been planning the successful
integration of the companies. In this regard, the fiscal and
regulatory undertakings that the Government of Ghana has confirmed that it
would give, will allow us to lay the foundations
for the Obuasi Deep Project, lengthening the life of mine by
more than 20 years at current production rates or higher.
Obuasi represents possibly the longest life gold orebody in the world.
The merger creates a combination of some of the best gold
assets and mining talent on the African continent, with a spread of long-life,
low-cost operations and reserves around
the world. AngloGold"s management will be greatly
strengthened by the talented Ashanti management team.
When the transaction is complete, AngloGold Ashanti will be
ready to show how a thoroughly African company can be a world leader in its
sector. This is very good news for AngloGold and Ashanti shareholders, the
governments and people of both Ghana and South Africa, the employees of both
companies and their communities.
AngloGold has produced a solid set of financial results for the
September quarter which are similar to those for the second
quarter this year, despite the 4% strengthening of the rand and higher wage
costs in South Africa. Cash operating costs on the South African mines only
increased by 2% in local currency terms. Operating profit, adjusted to exclude
unrealised gains on non-hedge derivatives, decreased marginally to $136
million. Despite this reduction, headline earnings, similarly adjusted,
increased slightly to $67 million, mainly as a result of lower corporate
administration costs.
The quarter saw good operating performances from Geita, Sadiola, Kopanang and
Great Noligwa, all of which reported higher gold production and lower unit
total cash costs. Grades on the South African operations and the underground
operations as a whole increased by some 4%, while those on the open-pit mines
decreased by some 4%, largely as a consequence of the anticipated and
significant grade decline at Morila.
We expect that the operating problems at Cerro Vanguardia in
Argentina, which resulted in a 16% decline in production over
the quarter, will be overcome with the commissioning there this
month of a material scrubber. At Cripple Creek & Victor,
difficulties with the haul truck fleet and the crusher have been
resolved and those associated with the heap leach continue to
receive management attention.
Although total cash costs were well controlled in local currency
terms, the continued strength of these currencies against the
dollar led to a 6% increase in dollar-denominated costs, to
$237 per ounce. A $10 per ounce increase in the received gold
price, which was again this quarter higher than the gold spot price,
ameliorated the effect of reduced production and
stronger operating currencies.
We will continue to give shareholders a clear picture of the
value creation they can expect from both AngloGold"s existing
operations and from our merger with Ashanti in the months
that lie ahead.
Russell Edey Bobby Godsell
Chairman Chief Executive Officer
30 October 2003
Operations at a glance
for the quarter ended 30 September 2003
Price received1 Production Total cash costs
% % %
$/oz Variance oz Variance $/oz Variance
** (000) ** **
Great Noligwa 384 5 217 11 219 2
TauTona 358 170 6 198 6
Morila* 350 4 80 (16) 109 16
Kopanang 385 6 132 15 261 (3)
Mponeng 358 130 2 248 6
Geita* 334 9 88 42 188 (18)
Cripple Creek & Victor 363 6 66 (15) 217 15
Morro Velho 355 (1) 59 7 146 2
Sadiola* 373 7 42 8 195 (8)
Sunrise Dam 357 (2) 85 1 242 (1)
Cerro Vanguardia* 320 (7) 41 (16) 173 14
Tau Lekoa 385 6 79 (4) 317 17
Serra Grande* 354 (1) 24 109 5
Yatela* 358 3 20 (33) 250 26
Union Reefs 360 (1) 23 (18) 240 3
Navachab 360 4 18 (14) 303 38
Ergo 361 3 45 (8) 408 16
Savuka 358 44 (17) 487 27
Other 27 (68)
AngloGold Group 364 3 1,390 (3) 237 6
% %
Variance Variance
$m ** $m **
Great Noligwa 37 28 35 30
TauTona 27 25
Morila* 19 (17) 14 (18)
Kopanang 16 45 14 56
Mponeng 15 (6) 10 (17)
Geita* 12 140 9 243
Cripple Creek & Victor 12 (14) 3
Morro Velho 12 9
Sadiola* 8 33 5 67
Sunrise Dam 8 (33) 3 (50)
Cerro Vanguardia* 7 (42) 2 (67)
Tau Lekoa 5 (29) 4 (33)
Serra Grande* 5 (29) 4 (8)
Yatela* 3 (25) 1 (90)
Union Reefs 2 (33) 2 (33)
Navachab (100) (100)
Ergo (3) 200 (3) 200
Savuka (8) 700 (8) 300
Other (9) (57) 7 40
AngloGold Group 168 136 (3)
1. Price received includes realised non-hedge derivatives
2. Operating profit excluding unrealised non-hedge derivatives
* Attributable
**Variance September 2003 quarter on June 2003 quarter Increase (decrease)
Review of the gold market
The gold market saw yet another volatile and active quarter with a price range
of over $50/oz and a closing price of $385/oz almost $40/oz higher than for
the opening price for the quarter. The average price of $363/oz was $16/oz
higher than the average for the previous quarter. Currency markets also
remained volatile, with the US dollar gaining strongly against the Euro for
much of the quarter only to end the period close to its lows of $1.19 to the
Euro, and fully 10% weaker against the yen. The rand also benefited from the
weaker dollar, touching R6.85 to the dollar during the quarter.
Gold price drivers
The gold price rallied again during the quarter in spite of the strong recovery
in the US dollar against the Euro during July and August, and in spite of
rallies in important equity markets. Also, physical demand for gold remained
depressed and provided no help for the price.
The driver behind the price was overwhelmingly new and growing investor
interest in gold, reflected in buying on the New York Commodity Exchange
(Comex). The quarter saw repeatedly higher levels of net long open positions on
the Comex, reaching a twenty year high of some 17.1Moz or 532t net long in
early September, pushing the gold price to its high of $393/oz for the quarter.
The new levels of interest were driven by a number of factors, including
concerns about global economic recovery, and scepticism about US recovery in
particular. Most analysts also see the US dollar as still overvalued, and the
US currency weakened sharply again during the last month of the quarter.
Many investors in gold now justify their interest in the metal as appropriate
to a range of economic circumstances, good both in the case of a weaker dollar
(stronger US growth and exports, some danger of inflation, and strong gold and
commodity prices) and of a stronger dollar (dampener on US recovery, threat of
deflation, weaker equity markets and gold holding valuable as a defensive
measure).
This investor interest could be sustained over a number of economic
circumstances, and several analysts have recently published higher spot gold
price forecasts for next year.
Investment
The appearance of new investors in gold has been the critical
incremental factor in this market, and the rising gold price over the
past eighteen months has been driven by investment and speculative demand
for gold. Although volatile, this demand essentially fills the gap caused
by falling jewellery demand in the face of higher spot gold prices. The
net long positions of investors on the Comex have been primary drivers of
the gold price over the past two years.
The past year has also seen the emergence of new gold investment products in
the form of exchange traded gold funds. The first of these has been the
Australian instrument launched by Gold Bullion Limited, but further such
investment products are under consideration elsewhere. These products provide
both institutional and private investors with the opportunity to invest in a
traded instrument whose sole underlying asset is physical gold. These products,
if successful could add a new category of demand for gold, and would help to
sustain a healthier price environment.
Physical
The physical market for gold continues to reflect the negative impact of higher
spot prices. Supply is up, and demand is down.
On the supply side, gold mine production for the first half of 2003 increased
by 2% against 2002, whilst scrap gold for sale increased sharply by 26% year on
year, at 513t in the first half of 2003. Net mine supply onto the market,
however, was reduced by over 300t of gold producer hedge reductions. Net
central bank sales were slightly higher than in 2002 at 290t for the first six
months of 2003. By contrast, global gold demand for jewellery was down in most
areas, with a fall overall of some 4% in gold offtake for jewellery worldwide.
Central bank
The September meetings of the IMF saw the first public comment about a renewal
of the 1999 Washington Agreement on official gold sales and lending. The
subject will be considered by the central banks concerned early in 2004, and
comments seem to imply that renewal is a matter of detail, not of principle. In
any extended agreement, the Swiss National Bank would wish to sell a further
130t to complete its original sales target of 1,300t (or approximately half of
its reserves in 1999 when the decision to sell was taken). The Bundesbank has
also expressed an interest in selling 400 to 600t of its current holdings of
3.440t (second only in the world to the US holdings of 8.135t). It seems likely
that the form and extent of the renewal will be orderly and will not negatively
impact the gold market.
Set against any gold sales programme of a renewed Washington Agreement, the
quarter saw news of official sector interest in increasing gold holdings as
well.
Liberalisation of the gold market in China has opened up a measure of debate on
gold"s possible role in that economy. The quarter saw comment by the Bank of
China indicating that it was reasonable that gold should make up a larger
percentage of the State"s foreign exchange reserves. In addition, a survey
indicated Chinese consumer willingness to consider gold in the arena of private
savings. Support was also voiced during the quarter by the Russian central bank
for a level of gold reserves higher than their current official gold holdings.
In the current global economic environment, with American trade and budget
deficits likely to endure for some time, and most analysts and commentators
forecasting further US dollar weakness against both the Euro and major Asian
currencies, the comments from China and Russia seem to reflect a diffidence
about further growth in official US dollar reserves, and a willingness to
reconsider gold as an important reserve asset.
Currency
Although the US dollar recovered steadily against the Euro from early June,
reaching its strongest point of $1.075 to the Euro in August, the recovery was
not sustained. During September, the US currency fell back again close to its
weakest point of $1.19 to the Euro. An important element in the weakening of
the dollar was Japan"s retreat from the strategy of the past year of buying
dollars to keep the Japanese currency relatively weak against the dollar.
During this third quarter, the yen was allowed to strengthen by fully 10%
against the dollar, from an opening exchange rate of y120/$ to its current
level of y108/$. The return of US dollar weakness to the market was given some
official context at the meeting of the G7 Finance Ministers in Dubai in late
September, where members of the G7 stated their position that exchange rates
should reflect economic fundamentals, and that greater flexibility in exchange
rates is desirable for major countries as a means of promoting effective
adjustments reflecting market realities in the international financial system.
This public position by the G7 was viewed as a recognition of the need for
further US dollar weakness.
The rand remains strong, disproportionately so by comparison with the weakening
of the US dollar against the Euro. The most important single factor here is
almost certainly the large interest rate spread in favour of the rand against
all major currencies, and the resultant carry trade in rand-denominated
instruments. This trade is likely to endure until South African interest rates
reduce sufficiently to discourage such funds, or until some other circumstance
changes to the disadvantage of the local currency. Until this does, local gold
producers along with many other sectors of the South African economy will
suffer from lower income derived from USdollar-denominated product, and from
higher production costs expressed in US dollars.
Hedge position
As at 30 September 2003, the group had outstanding, the following
forward-pricing commitments against future production. The total net delta
tonnage of the hedge on this date was 8.66Moz or 269.5t (at 30 June 2003:
8.73Moz or 271.5t).
The marked-to-market value of all hedge transactions making
up the hedge positions was a negative $447m (negative
R3.1bn) as at 30 September 2003 (as at 30 June 2003:
negative $179.3m negative R1.35bn). These values were
based on a gold price of $383.50/oz, exchange rates of
R/$6.95 and A$/$0.6850 and the prevailing market interest rates and
volatilities at the time.
As at 30 October 2003, the marked-to-market value of the
hedge book was a negative $432.2m (negative R2.9bn),
based on a gold price of $386.4/oz and exchange rates of
R/$6.86 and A$/$0.7053 and the prevailing market interest
rates and volatilities at the time.
These marked-to-market valuations are in no way predictive of
the future value of the hedge position or of future impact on the
revenue of the company. The valuation represents the cost of
buying all hedge contracts at the time of valuation, at market
prices and rates available at the time.
Year 2003 2004 2005 2006
DOLLAR GOLD
Forward
contracts Amount (kg) 18,374 26,576 19,862
$ per oz $315 $324 $333
Put options
purchased Amount (kg) 1,016 5,772 2,624 4,918
$ per oz $405 $382 $363 $363
*Delta (kg) 737 2,555 920 1,587
Put options
sold Amount (kg) 6,532 13,997 2,799 4,354
$ per oz $351 $341 $345 $339
*Delta (kg) 440 3,136 715 1,036
Call options
purchased Amount (kg) 7,268 2,189
$ per oz $343 $328
*Delta (kg) 6,996 1,863
Call options
sold Amount (kg) 10,939 12,361 18,227 16,547
$ per oz $378 $363 $338 $346
*Delta (kg) 5,820 8,367 13,966 12,245
RAND GOLD
Forward
contracts Amount (kg) 1,450 8,426 9,078 4,500
Rand per kg R43,860 R87,523 R116,891 R96,436
Put options
purchased Amount (kg) 1,875 1,875 1,875
Rand per kg R93,602 R93,602 R93,602
*Delta (kg) 1,329 590 459
Put options
sold Amount (kg) 1,866
Rand per kg R89,266
*Delta (kg) 1,692
Call options
purchased Amount (kg) 632
Rand per kg R75,428
*Delta (kg) 632
Call options
sold Amount (kg) 8,091 2,813 4,687 4,688
Rand per kg R93,689 R129,715 R131,944 R132,647
*Delta (kg) 825 94 1,457 1,794
Year 2007 2008-2012 Total
DOLLAR GOLD
Forward contracts Amount (kg) 18,974 25,878 109,664
$ per oz $337 $355 $334
Put options purchased Amount (kg) 728 15,058
$ per oz $292 $369
*Delta (kg) 80 5,879
Put options sold Amount (kg) 27,682
$ per oz $343
*Delta (kg) 5,327
Call options purchased Amount (kg) 9,457
$ per oz $340
*Delta (kg) 8,859
Call options sold Amount (kg) 14,308 54,245 126,627
$ per oz $336 $363 $356
*Delta (kg) 11,122 41,435 92,955
RAND GOLD
Forward contracts Amount (kg) 4,541 3,732 31,728
Rand per kg R114,915 R119,580 R102,886
Put options purchased Amount (kg) 5,625
Rand per kg R93,602
*Delta (kg) 2,378
Put options sold Amount (kg) 1,866
Rand per kg R89,266
*Delta (kg) 1,692
Call options purchased Amount (kg) 632
Rand per kg R75,428
*Delta (kg) 632
Call options sold Amount (kg) 2,986 11,944 35,209
Rand per kg R173,119 R209,288 R152,798
*Delta (kg) 493 2,733 7,396
Year 2003 2004 2005 2006
A DOLLAR
GOLD
Forward
contracts Amount (kg) 6,771 5,443 6,221 9,331
A$ per oz A$503 A$531 A$685 A$655
Put
options
purchased Amount (kg)
A$ per oz
*Delta (kg)
Put
options
sold Amount (kg)
A$ per oz
*Delta (kg)
Call
options
purchased Amount (kg) 5,443 3,110 6,221
A$ per oz A$637 A$724 A$673
*Delta (kg) 1,623 877 2,988
Call
options
sold Amount (kg) 4,666
A$ per oz A$675
*Delta (kg) 299
Total net
gold: Delta (kg) 5,848 38,260 57,216 45,754
Delta (oz) 188,004 1,230,090 1,839,506 1,471,034
Year 2007 2008-2012 Total
A DOLLAR GOLD
Forward contracts Amount (kg) 8,398 13,343 49,507
A$ per oz A$623 A$635 A$614
Put options purchased Amount (kg)
A$ per oz
*Delta (kg)
Put options sold Amount (kg)
A$ per oz
*Delta (kg)
Call options purchasedAmount (kg) 3,732 11,197 29,703
A$ per oz A$668 A$702 A$682
*Delta (kg) 1,964 6,365 13,817
Call options sold Amount (kg) 4,666
A$ per oz A$675
*Delta (kg) 299
Total net gold: Delta (kg) 41,644 80,756 269,478
Delta (oz) 1,338,896 2,596,393 8,663,924
The following table indicates the group"s currency hedge position at
30 September 2003
Year 2003 2004 2005 2006
RAND DOLLAR (000)
Forward contracts Amount ($)
Rand per $
Put options purchased Amount ($)
Rand per $
*Delta ($)
Put options sold Amount ($)
Rand per $
*Delta ($)
Call options purchased Amount ($)
Rand per $
*Delta ($)
Call options sold Amount (kg) 10,000
Rand per $ R7.55
*Delta ($) 5
A DOLLAR (000)
Forward contracts Amount ($) 29,428 29,275 10,847
A$er $ A$0.59 A$0.59 A$0.51
Put options purchased Amount ($) 10,000
A$er $ A$0.63
*Delta ($) 6,175
Put options sold Amount ($) 10,000
A$er $ A$0.68
*Delta ($) 4,114
Call options purchased Amount ($)
A$er $
*Delta ($)
Call options sold Amount (kg) 20,000
A$er $ A$0.60
*Delta ($) 5,676
Year 2007 2008-2012 Total
RAND DOLLAR (000)
Forward contracts Amount ($)
Rand per $
Put options purchased Amount ($)
Rand per $
*Delta ($)
Put options sold Amount ($)
Rand per $
*Delta ($)
Call options purchased Amount ($)
Rand per $
*Delta ($)
Call options sold Amount (kg) 10,000
Rand per $ R7.55
*Delta ($) 5
A DOLLAR (000)
Forward contracts Amount ($) 69,550
A$er $ A$0.58
Put options purchased Amount ($) 10,000
A$er $ A$0.63
*Delta ($) 6,175
Put options sold Amount ($) 10,000
A$er $ A$0.68
*Delta ($) 4,114
Call options purchased Amount ($)
A$er $
*Delta ($)
Call options sold Amount (kg) 20,000
A$er $ A$0.60
*Delta ($) 5,676
*The Delta position indicated above reflects the nominal amount of the option
multiplied by the mathematical probability of the option being exercised. This
is calculated using the Black-Scholes option formula with the ruling market
prices, interest rates and volatilities as at 30 September 2003.
GROUP INCOME STATEMENT
Quarter ended
September June
2003 2003
SA Rand million Notes Unaudited Unaudited
3,735 3,907
Gold income 2 (2,821) (2,932)
Cost of sales 914 975
Non-hedge derivatives 390 119
1,304 1,094
Operating profit
Corporate administration and other
expenses (46) (82)
Market development costs (29) (25)
Exploration costs (68) (72)
Interest receivable 56 63
Other net expense (31) (66)
Finance costs (77) (71)
Marked-to-market of debt financial
instruments 7 -
Abnormal item - settlement of claim - -
1,116 841
Profit before exceptional items
Amortisation of goodwill (54) (56)
Impairment of mining assets (252) (95)
(Loss) profit on disposal of assets - 56
Profit on disposal of investments 280 -
Termination of retirement benefit plans - -
1,090 746
Profit on ordinary activities before
taxation
Taxation 3 (334) (266)
756 480
Profit on ordinary activities after
taxation
Minority interests (27) (36)
729 444
Net profit
Adjusted operating profit
The operating profit has been adjusted by
the
following to arrive at adjusted operating
profit:
Operating profit 1,304 1,094
300 12
Unrealised non-hedge derivatives
Adjusted operating profit 1,004 1,082
Headline earnings
The net profit has been adjusted by the
following to
arrive at headline earnings:
Net profit 729 444
Amortisation of goodwill 54 56
Impairment of mining assets 252 95
Loss (profit) on disposal of assets - (56)
Profit on disposal of investments (280) -
Termination of retirement benefit plans - -
Taxation on exceptional items (81) (26)
674 513
Headline earnings
Unrealised non-hedge derivatives and
marked-to- (307) (12)
market of debt financial instruments
Deferred tax on unrealised non-hedge
derivatives 130 15
497 516
Adjusted headline earnings
Earnings per ordinary share (cents)
- Basic 327 199
- Diluted 326 199
- Headline 303 230
- Adjusted headline 223 232
Interim dividends
- Rm
- cents per share
Nine months ended
September September
2003 2002
SA Rand million Unaudited Unaudited
11,580 13,558
Gold income (8,638) (9,208)
Cost of sales 2,942 4,350
Non-hedge derivatives 665 676
3,607 5,026
Operating profit
Corporate administration and other expenses (213) (185)
Market development costs (94) (134)
Exploration costs (215) (233)
Interest receivable 191 288
Other net expense (130) (54)
Finance costs (217) (364)
Marked-to-market of debt financial instruments 7 -
Abnormal item - settlement of claim - (102)
2,936 4,242
Profit before exceptional items
Amortisation of goodwill (168) (226)
Impairment of mining assets (347) -
(Loss) profit on disposal of assets 56 (139)
Profit on disposal of investments 280 -
Termination of retirement benefit plans - 2
2,757 3,879
Profit on ordinary activities before taxation
Taxation (938) (1,284)
1,819 2,595
Profit on ordinary activities after taxation
Minority interests (98) (106)
1,721 2,489
Net profit
Adjusted operating profit
The operating profit has been adjusted by the
following to arrive at adjusted operating
profit:
Operating profit 3,607 5,026
304 (179)
Unrealised non-hedge derivatives
Adjusted operating profit 3,303 5,205
Headline earnings
The net profit has been adjusted by the
following to
arrive at headline earnings:
Net profit 1,721 2,489
Amortisation of goodwill 168 226
Impairment of mining assets 347 -
Loss (profit) on disposal of assets (56) 139
Profit on disposal of investments (280) -
Termination of retirement benefit plans - (2)
Taxation on exceptional items (106) 47
1,794 2,899
Headline earnings
Unrealised non-hedge derivatives and
marked-to- (311) 179
market of debt financial instruments
Deferred tax on unrealised non-hedge
derivatives 145 (82)
1,628 2,996
Adjusted headline earnings
Earnings per ordinary share (cents)
- Basic 773 1,123
- Diluted 769 1,116
- Headline 805 1,307
- Adjusted headline 731 1,351
Interim dividends
- Rm 837 1,506
- cents per share 375 675
The results have been prepared in accordance with International Financial
Reporting Standards (IFRS)
GROUP INCOME STATEMENT
Quarter ended
September June
2003 2003
US Dollar million Notes Unaudited Unaudited
505 505
Gold income
2 (381) (380)
Cost of sales
124 125
Non-hedge derivatives 52 17
176 142
Operating profit
Corporate administration and other
expenses (6) (11)
Market development costs (4) (3)
Exploration costs (9) (9)
Interest receivable 8 9
Other net expense (4) (11)
Finance costs (11) (9)
Marked-to-market of debt financial
instruments 1 -
Abnormal item - settlement of claim - -
151 108
Profit before exceptional items
Amortisation of goodwill (7) (7)
Impairment of mining assets (35) (12)
(Loss) profit on disposal of assets - 7
Profit on disposal of investments 38 -
Termination of retirement benefit plans - -
147 96
Profit on ordinary activities before
taxation
Taxation 3 (46) (34)
101 62
Profit on ordinary activities after
taxation
Minority interests (4) (5)
97 57
Net profit
Adjusted operating profit
The operating profit has been adjusted by
the
following to arrive at adjusted operating
profit:
Operating profit 176 142
40 2
Unrealised non-hedge derivatives
Adjusted operating profit 136 140
Headline earnings
The net profit has been adjusted by the
following to
arrive at headline earnings:
Net profit 97 57
Amortisation of goodwill 7 7
Impairment of mining assets 35 12
Loss (profit) on disposal of assets - (7)
Profit on disposal of investments (38) -
Termination of retirement benefit plans - -
Taxation on exceptional items (11) (3)
90 66
Headline earnings
Unrealised non-hedge derivatives and
marked-to-
(41) (2)
market of debt financial instruments
Deferred tax on unrealised non-hedge
derivatives 18 2
67 66
Adjusted headline earnings
Earnings per ordinary share (cents)
- Basic 44 26
- Diluted 43 26
- Headline 40 30
- Adjusted headline 30 30
Interim dividends 1
- $m
- cents per share
Nine months ended
September September
2003 2002
US Dollar million Unaudited Unaudited
1,482 1,260
Gold income
(1,107) (856)
Cost of sales
375 404
Non-hedge derivatives 88 62
463 466
Operating profit
Corporate administration and other expenses (27) (17)
Market development costs (12) (12)
Exploration costs (28) (22)
Interest receivable 24 27
Other net expense (17) (5)
Finance costs (28) (34)
Marked-to-market of debt financial instruments 1 -
Abnormal item - settlement of claim - (10)
376 393
Profit before exceptional items
Amortisation of goodwill (21) (21)
Impairment of mining assets (47) -
(Loss) profit on disposal of assets 7 (12)
Profit on disposal of investments 38 -
Termination of retirement benefit plans - -
353 360
Profit on ordinary activities before taxation
Taxation (122) (119)
231 241
Profit on ordinary activities after taxation
Minority interests (12) (10)
219 231
Net profit
Adjusted operating profit
The operating profit has been adjusted by the
following to arrive at adjusted operating profit:
Operating profit 463 466
41 (17)
Unrealised non-hedge derivatives
Adjusted operating profit 422 483
Headline earnings
The net profit has been adjusted by the following to
arrive at headline earnings:
Net profit 219 231
Amortisation of goodwill 21 21
Impairment of mining assets 47 -
Loss (profit) on disposal of assets (7) 12
Profit on disposal of investments (38) -
Termination of retirement benefit plans - -
Taxation on exceptional items (14) 4
228 268
Headline earnings
Unrealised non-hedge derivatives and marked-to-
(42) 17
market of debt financial instruments
Deferred tax on unrealised non-hedge derivatives 21 (8)
207 277
Adjusted headline earnings
Earnings per ordinary share (cents)
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